What are the most significant implications of the Enron collapse for global corporate governance

Introduction Enron, the seventh top company in the united States until 2001, it collapsed because its decision maker officers: the straits executive officer, the chief subroutine officer and the chief finance officer used the brute: the chronicle mensuration of market to market to accommodate the fiscal phenomena. Market to market is an accounting principle that the focus of its monetary value is the demo market price; however, the Enrons nonsymbiotic directors breakaway directors did non inspect the problem of the financial situation. Sarbanes-Oxley legislation highlights the duty of furrow directors to supervise accounting affairs; similarly, Smith, the Management consultant from the U.S.A (2007) emphasized that to conform the financial phenomena is not for legal way. Sarbanes- Oxley legislation is a regulation for corporal governance. In Order to train the rift between directors and accountants, freelance directors have to work in audit committee, likewis e, executive officers could not change the accounting step to overwhelm up the financial problems. Therefore, the responsibilities of independent directors and choosing the disclosure and vaporous accounting standard are important elements to manage a company.

The responsibilities of independent directors Wallison, the codirector of American Enterprise institutes design on financial markets deregulation (2006) believed that independent directors is an important subroutine of corporate governance .He stated that independent directors and the contortion of financial stipulation are problems in some companies. Cornfrod, the Bard college professor (2004, p.7) argued that inde pendent directors failed to avoid the collap! se of company at sometimes. These independent directors miss in their management job. Eichenwarld, the New York Times journalist (2003), cited in Hamon that independent directors intended to do insider trading and fraudful behavior. unaffiliated directors, lacked of the...If you requirement to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: How it works.